Performance By Home Type From August 2019 and August 2020.

A quick review of how Condominiums performed compared to Townhomes, Semi-Detached, and Detached homes.

Going into January 2020 the area saw robust demand for all home types with a particular interest in Condominiums.  This was mostly attributed to the rise in single-family residential semi-detached and detached home prices making affordability just outside of reach.  For this segment and others, the Townhouse market was by default the next best choice.

As the chart shows 2-Storey detached homes in the area grew by 12.1% and outpaced all the other home types.

On the opposite side of the spectrum, we see Condomiums price value rose 3.2% over the same time period.  This rate of appreciation is below the municipal rate of appreciation when directly compared.

You may think this is not a great situation if you currently own a condominium or plan on buying one in the area and are concerned about appreciation.  This is best answered in understanding the data.  As semi-detached and detached homes have risen (see chart below) the impact has driven this segment of potential detached homebuyers out and shifted towards looking at a more affordable solution...condominiums.

In addition, the impact of Covid-19 created a greater difficulty for condominium owners who wanted to sell during March 2020 to September 2020.  Many of the area condominiums and their Board of Directors put in place measures that prevented the use of elevators for moving, no open house hosting and showings permitted - online-only, restricted building access to residence only, limited or no access to building amenities for inspection, along with other measures as implemented by each individual condominium.  This created a more difficult environment for both sellers and buyers as compared to townhomes, semi-detached, and detached homes where safety measures could be put in place.

While inventory was down across all home types, it was particularly noticed in the condominium sector.

Comparison Benchmark Price Performance Over Time - Condominiums vs Houses

In this chart, we compare the performance of property types from the peak of April 2016 to August 2020.

Focusing on condominiums (apartment) we can see that the area has had a consistent and steady rise in home prices when compared to the more volatile price movements of townhomes, semi-detached, and detached houses.

Note that in April 2020, as the impact of Covid-19 measures took place and particularly the impact on condominiums we can see a gradual decline in price performance. 

This also signals a sign that we should start to see an uptick in price-performance similar to homes as restrictions and measures are lifted in the condominium segment.

There has been a marked increase in supply (inventory) and days on market over the previous 6 months.  As people become more comfortable with opening up their condominium doors to prospective buyers it is anticipated that inventory will continue to increase and buyer demand will continue.

The performance of condominiums in the area has proven to be a safe place with consistent growth, less volatility, greater affordability, and increased demand.

It also offers a hedge against a market correction.  For example, should the market retreat by -10% and using the August 2020 benchmark price-performance index you can see that the value of a 2-storey detached home would fall by $177,000.  In comparison, a condominium would fall by as little as $73,000K.  In each case, the percentage doesn't change BUT the amount of wealth/equity does.

Condominium Benchmark Price Performance Over 

Yonge & Eglinton condominiums have been a great opportunity for homeownership with providing a safe community to live and build your wealth.

A condominium purchased in January 2005 would have cost on average $238,800 and today the same purchase would be worth $732,400

Even during the peak of 2016 when home prices were at all-time highs the Yonge & Eglinton condominium market continued to increase in value while many other home types declined in price performance.

A detached home purchased in June 2017 likely is not going to be worth much more than the price-performance benchmark today.  In comparison, the price performance of a condominium in the area has been much better.